Crafting the Right Video Approach
In the world of crowdfunding, equity and reward-based campaigns are two distinct paths that businesses and entrepreneurs can take to raise funds. While they share the common goal of attracting support, the audiences, messaging, and video strategies required for each are different.
At Alchemedia, we’ve had the pleasure of creating compelling, creative, and effective pitch videos for both equity and reward-based crowdfunding campaigns. Here’s a look at how the approach to designing and scripting the video differs between the two types of fundraise, along with key features to take into consideration.
What is Equity Crowdfunding?
Equity crowdfunding enables startups and businesses to raise funds by offering a stake (equity) in their company to investors. Platforms like Seedrs (now Republic) and Crowdcube are popular hubs for equity campaigns in the UK. The audience consists of potential investors looking for profitable ventures, making credibility and competence essential.
What is Reward-Based Crowdfunding?
Reward-based campaigns, seen on platforms like Kickstarter and Indiegogo, allow backers to support a project in exchange for rewards (e.g., a product, experience, or exclusive perks). The audience consists of enthusiasts eager to support a brand’s vision, drawn to the product’s innovation and creativity.
A Tailored Approach
Crowdfunding videos for equity and reward-based campaigns share some common elements but also have key distinctions. Both incorporate aspects of product/marketing videos and brand storytelling. They should feature impactful storytelling and a creative concept to establish an emotional connection with the audience. However, while reward-based crowdfunding videos focus primarily on building excitement and emotional appeal, equity crowdfunding videos must also convey a compelling business proposition to attract potential investors.
Shared Key Features:
- Emotion-Driven Storytelling
- Both types of videos aim to create an emotional connection with the audience, showcasing the product’s uniqueness, innovation, and brand’s values.
- Both types of videos aim to create an emotional connection with the audience, showcasing the product’s uniqueness, innovation, and brand’s values.
- Showcasing the Product
- Both types of videos aim to showcase the product in action, demonstrating its functionality and real-life applications. This often includes lifestyle scenarios, hands-on demos, animation mock-ups, and testimonials, providing viewers with a clear understanding of how the product fits into their lives.
- Both types of videos aim to showcase the product in action, demonstrating its functionality and real-life applications. This often includes lifestyle scenarios, hands-on demos, animation mock-ups, and testimonials, providing viewers with a clear understanding of how the product fits into their lives.
- Highlighting the Product’s USP
- Emphasizing the product’s unique selling points is crucial for capturing audience interest. The video should highlight what sets the product apart—whether it’s groundbreaking innovation, a solution to a market gap, or unmatched value and creativity—using compelling storytelling, animation, and visuals that evoke excitement and curiosity.
- Emphasizing the product’s unique selling points is crucial for capturing audience interest. The video should highlight what sets the product apart—whether it’s groundbreaking innovation, a solution to a market gap, or unmatched value and creativity—using compelling storytelling, animation, and visuals that evoke excitement and curiosity.
- Call to Action
- While the nature of the call-to-action differs, both videos motivate the audience to take action. Reward-based videos focus on pre-orders or early-bird offers, whereas equity videos encourage investment.
Unique Features of an Equity Crowdfunding Video
- Data-Driven Content
- Unlike reward-based campaigns, equity crowdfunding videos must present key metrics, market data, and financial projections to establish credibility.
- Unlike reward-based campaigns, equity crowdfunding videos must present key metrics, market data, and financial projections to establish credibility.
- Focus on the Business Proposition
- Equity videos highlight the company’s traction, roadmap, and market potential to appeal to investors as a solid and credible investment opportunity.
- Equity videos highlight the company’s traction, roadmap, and market potential to appeal to investors as a solid and credible investment opportunity.
- Team and Vision
- Investors are keen to understand the people behind the business. These videos often introduce the founders and team, showcasing their expertise and vision.
- Investors are keen to understand the people behind the business. These videos often introduce the founders and team, showcasing their expertise and vision.
- Investor-Focused Call to Action
- The ultimate goal is to encourage viewers to invest, often with a clear and compelling call to action.
Why a Tailored Approach Matters
While both types of videos share foundational elements—such as engaging narratives, product appeal, and compelling visual storytelling—an equity crowdfunding video builds upon these by integrating the critical components of a business pitch. This tailored approach ensures the video resonates with its intended audience, whether inspiring backers or convincing investors.
Which Approach Suits Your Campaign?
The best crowdfunding videos are tailored to the platform, audience, and campaign goals. At Alchemedia, we bring years of expertise in crafting successful pitch videos.
Whether you’re looking to attract investors or inspire pre-orders, we’re here to help you tell your brand’s story effectively.
Ready to Start Your Crowdfunding Journey?
If you’re planning a fundraising campaign, let’s talk! Book a free consultation today, and let’s explore how we can make your crowdfunding video stand out.
